Is your financial advisor registered?
(NC) Did you know that most financial frauds are committed by individuals who are not licensed to sell financial products? You can protect yourself against these scams by ensuring that your financial advisor is licensed, registered and in good standing with regulatory organizations across the country.
Licensed financial advisors must complete continuing education programs to help them keep on top of new financial products, rules and regulations, and industry trends. If they do not comply, they are subject to stiff penalties, including fines and loss of license.
To ensure that the firm and financial advisor you are dealing with have met the appropriate requirements and are licensed to provide certain services, visit the following websites:
• The national registration search, at http://www.securities-administrators.ca/nrs/nrsearch.aspx?id=850, lists all registrants (individuals and firms) in Canada, except for those registered solely with the Ontario Securities Commission (OSC).
• A list of those registered in Ontario is available at http://www.osc.gov.on.ca/en/Investors_check-registration_index.htm.
• The Investment Industry Regulatory Association of Canada member list: http://www.iiroc.ca/industry/Pages/Dealers-We-Regulate.aspx.
• The Mutual Fund Dealers Association of Canada member list: http://www.mfda.ca/members/members.html.
• La Chambre de la sécurité financière (Québec only): http://www.chambresf.com/en/.
To find out whether a financial advisor has been disciplined by securities administrators, check the Canadian Securities Administrators' Disciplined Persons list http://www.securities-administrators.ca/disciplinedpersons.aspx.
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Source: The Investment Funds Institute of Canada (IFIC.CA)
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